When you're ready to move into a new home in Logan, Queensland, but your current property hasn’t sold yet, a bridging loan can be a powerful financial tool. It gives you the flexibility to buy now and sell later without missing out on your dream home.

In this guide, we'll break down how bridging loans work, when to use them, and what Logan locals need to know before applying. Let’s dive in and explore how bridging loans can simplify your property transition in Logan.

What Is a Bridging Loan?

A bridging loan is a short-term loan that covers the gap between buying a new property and selling your current one. It “bridges” your finances during the transition.

These loans are commonly used by homeowners who don’t want to wait for their existing home to sell before purchasing a new one. The loan is typically secured against your current property and paid off once it sells.

How Bridging Loans Work in Logan

If you're living or buying property in Logan, here’s how bridging loans generally work:

• You get pre-approval for a bridging loan while still owning your current home.
  
  
• The lender covers the cost of your new property upfront.
  
  
• Once your existing home sells, the proceeds go toward repaying the bridging loan.
  
  
• You then continue regular repayments on the remaining balance.

In most cases, bridging loans are interest-only during the bridging period, which usually lasts up to 6 or 12 months.

Types of Bridging Loans Available

There are two common types of bridging loans in Australia:

1. Closed Bridging Loan

This is used when you already have a contract in place to sell your current home. The lender knows exactly when the sale will happen.

2. Open Bridging Loan

This option is for borrowers who haven’t yet sold their existing home. Lenders take on more risk here, so approval criteria can be stricter.

Both types are available in Logan through banks and mortgage brokers, including Cube Loans.

When to Consider a Bridging Loan

Bridging loans aren’t for every buyer. However, they can be ideal if:

• You’ve found your dream home but haven’t sold your current property.
  
  
• You want to avoid renting between moves.
  
  
• You expect your existing home to sell within a reasonable timeframe.
  
  
• You’re looking to renovate your new property before moving in.

Logan’s property market can move quickly, so having a bridging loan ready may give you a competitive edge.

Pros and Cons of Bridging Loans

Understanding the advantages and drawbacks helps you make informed decisions.

Pros

• Buy now, sell later flexibility
  
  
• Interest-only payments during the bridging period
  
  
• Avoids temporary accommodation or renting
  
  
• Helps secure your ideal home in a competitive market
  
  

Cons

• Higher interest rates compared to standard loans
  
  
• Short repayment timeframe
  
  
• Risk of owning two homes if your current one doesn’t sell in time
  
  
• Can be harder to qualify without sufficient equity

Eligibility Criteria in Logan, QLD

To qualify for a bridging loan, Logan borrowers generally need to meet the following:

• Have sufficient equity in their current home (usually more than 50%)
  
  
• Demonstrate serviceability for the new loan
  
  
• Have a clear plan to sell the existing property
  
  
• Work with a reputable mortgage broker or bank

Cube Loans helps Logan residents assess their eligibility and choose the most suitable lender based on their situation.

Costs Associated with Bridging Loans

Bridging loans can come with upfront and ongoing costs that vary by lender:

• Loan establishment fees
  
  
• Valuation fees for both properties
  
  
• Higher interest rates
  
  
• Possible exit fees if the loan isn’t repaid within the bridging period

Make sure you get a breakdown of all fees before proceeding.

Selling First vs Buying First in Logan

Here’s how a bridging loan supports a “buy first” strategy compared to the traditional “sell first” approach.

Buying First (With Bridging Loan):

• Secure your new home immediately
  
  
• Less pressure during the selling process
  
  
• Avoid moving twice
  
  

Selling First:

• More predictable budget
  
  
• No need for a bridging loan
  
  
• Risk of missing out on ideal property
  
  

Cube Loans can help you weigh the pros and cons based on your Logan property goals.

Common Mistakes to Avoid

Avoid these pitfalls when applying for a bridging loan:

• Underestimating timeframes for selling your property
  
  
• Not factoring in extra interest or fees
  
  
• Taking on a bridging loan without solid exit strategy
  
  
• Ignoring the impact on your long-term finances

A Logan mortgage broker can help you avoid these issues and keep your finances on track.

Tips to Maximise Bridging Loan Success

• Get pre-approval early
  
  
• Work with an experienced real estate agent in Logan
  
  
• Stage your current home for a faster sale
  
  
• Keep communication open with your broker

Planning ahead can make your property transition smooth and stress-free.

How Long Can You Have a Bridging Loan?

Most bridging loans in Australia last between 6 to 12 months. In some cases, lenders may offer up to 18 months if needed. However, the shorter the loan term, the less interest you'll pay.

In Logan’s relatively steady housing market, many properties sell within this window, making bridging loans a viable option.

Working With a Mortgage Broker in Logan

Navigating bridging loans can be complex. That’s why many Logan buyers turn to local brokers like Cube Loans for guidance. Benefits of using a broker include:

• Access to multiple lenders
  
  
• Tailored loan comparisons
  
  
• Support with paperwork and lender negotiations
  
  
• Up-to-date knowledge of Logan’s property trends

Cube Loans offers free consultations to help you get started on the right foot.

FAQs

What is a bridging loan in Australia?

A bridging loan is a short-term loan that helps you buy a new property before selling your current one.

How long does a bridging loan last?

Most bridging loans last 6 to 12 months, but some can extend up to 18 months depending on the lender.

Do you need a deposit for a bridging loan?

Typically, no deposit is required if you have enough equity in your existing home.

Can I get a bridging loan with bad credit?

It may be difficult. Lenders usually require good credit and strong financials for approval.

Are bridging loans more expensive?

Yes, they usually come with higher interest rates and additional fees compared to standard home loans.

Is it better to sell or buy first in Logan?

It depends on your situation. If the market is hot and your dream home is available, buying first with a bridging loan might make sense.

Can a mortgage broker help with bridging loans?

Absolutely. Mortgage brokers like Cube Loans can access multiple lenders and help you find the best terms for your needs.

Final Thoughts

Bridging loans can be a smart solution when you're stuck between selling and buying in Logan. But they require clear planning and the right advice. If you’re confident your home will sell quickly and you’ve found the right next property, bridging finance could help you move forward without delay.



If you're considering a bridging loan in Logan, Queensland, the team at Cube Loans is here to guide you. Our experienced Logan mortgage brokers can help you compare lenders, understand the fine print, and choose the right option for your situation.

Visit www.cubeloans.com.au or call us directly at 1800 774 756 to get expert advice today. Let’s make your next move easy, stress-free, and financially sound.